DCIT., CIRCLE-8(1), HYDERABAD vs. DELOITTE TAX SERVICES INDIA PRIVATE LIMITED, HYDERABAD

None appeared on behalf of the assessee.

The only ground raised by the Revenue read as under: “Whether on the facts and circumstances of the case, the learned CIT (A) was justified in holding that the delayed remittance of employee’s contribution towards PF/ESI is allowable u/s 43B inspite of specific provisions of the Income Tax Act u/s 36(1)(va) providing for disallowance of the same”.

Facts of the case, in brief, are that the assessee is a company, filed its return of income declaring total income at Page 1 of 3

In appeal, the learned CIT (A) NFAC allowed the appeal of the assessee by disallowing the amount of Rs1,84,40,473/- made by the CPC Bengaluru.

We have heard the rival arguments and perused the record. We find the learned CIT (A) NFAC deleted the addition on the ground that the assessee has remitted such amount to the PF & ESI contribution before the due date of filing of the return. We find the issue stands decided against the assessee by the decision of the Hon'ble Supreme Court in Checkmate Services (P) Ltd (Supra) where it has been held that the employee’s contribution to PF & ESI, if not remitted before the due date prescribed in the respective enactments, cannot be allowed as a deduction. Therefore, the order of the learned CIT (A) NFAC to this extent is contrary to law as laid down by the Hon'ble Supreme Court and therefore, has to be reversed. We hold and direct accordingly. The only ground raised by the Revenue is accordingly allowed for statistical purposes.

In the result, appeal filed by the Revenue is allowed for statistical purposes. Page 2 of 3